Communication is the act of expressing or transmitting ideas, information, knowledge, thoughts, and feelings, as well as understanding what is expressed by others. The communication process involves both sending and receiving messages and can take many forms.
In management[ edit ] In the last decades of the 20th century, the word "stakeholder" became more commonly used to mean a person or organization that has a legitimate interest in a project or entity.
In discussing the decision-making process for institutions—including large business corporationsgovernment agenciesand non-profit organizations —the concept has been broadened to include everyone with an interest or "stake" in what the entity does.
This includes not only vendors, employeesand customersbut even members of a community where its offices or factory may affect the local economy or environment. In this context, a "stakeholder" includes not only the directors or trustees on its governing board who are stakeholders in the traditional sense of the word Key terms business communication also all persons who paid into the figurative stake and the persons to whom it may be "paid out" in the sense of a "payoff" in game theorymeaning the outcome of the transaction.
Therefore, in order to effectively engage with a community of stakeholders, the organisation's management needs to be aware of the stakeholders, understand their wants and expectations, understand their attitude supportive, neutral or opposedand be able to prioritize the members of the overall community to focus the organisation's scarce resources on the most significant stakeholders.
Other stakeholders would be funders and the design-and-construction team. The holders of each separate kind of interest in the entity's affairs are called a constituency, so there may be a constituency of stockholdersa constituency of adjoining property owners, a constituency of banks the entity owes money to, and so on.
In that usage, "constituent" is a synonym for "stakeholder". Proponents in favour of stakeholders may base their arguments on the following four key assertions: For example, according to this thinking, programs that satisfy both employees' needs and stockholders' wants are doubly valuable because they address two legitimate sets of stakeholders at the same time.
There is evidence that the combined effects of such a policy are not only additive but even multiplicative. For instance, by simultaneously addressing customer wishes in addition to employee and stockholder interests, both of the latter two groups also benefit from increased sales.
The argument is that debt holders, employees, and suppliers also make contributions and thus also take risks in creating a successful firm.
However, many believe that due to certain kinds of board of directors structures, top managers like CEOs are mostly in control of the firm.
By attempting to fulfill the needs and wants of many different people ranging from the local population and customers to their own employees and owners, companies can prevent damage to their image and brand, prevent losing large amounts of sales and disgruntled customers, and prevent costly legal expenses.
While the stakeholder view has an increased cost, many firms have decided that the concept improves their image, increases sales, reduces the risks of liability for corporate negligenceand makes them less likely to be targeted by pressure groups, campaigning groups and NGOs.
Stakeholder theory Post, Preston, Sachsuse the following definition of the term "stakeholder": Stakeholders can affect or be affected by the organization's actions, objectives and policies.
Some examples of key stakeholders are creditors, directors, employees, government and its agenciesowners shareholderssuppliers, unions, and the community from which the business draws its resources.
Not all stakeholders are equal. A company's customers are entitled to fair trading practices but they are not entitled to the same consideration as the company's employees. Robert Allen Phillips provides a moral foundation for stakeholder theory in Stakeholder Theory and Organizational Ethics.
There he defends a "principle of stakeholder fairness" based on the work of John Rawlsas well as a distinction between normatively and derivatively legitimate stakeholders. Real stakeholders, labelled stakeowners: Stakeowners own and deserve a stake in the firm.
Stakeholder reciprocity could be an innovative criterion in the corporate governance debate as to who should be accorded representation on the board.
Corporate social responsibility should imply a corporate stakeholder responsibility.Key performance indicators (KPIs) are business metrics used by corporate executives and other managers to track and analyze factors deemed crucial to the success of an organization.
Effective KPIs focus on the business processes and functions that senior management sees as most important for measuring progress toward meeting strategic goals and performance targets.
Communication Terms and Concepts. Definition: "Communication is the process of sharing meaning through continuous flow of symbolic messages." (Froemling 5) Communicator (Sender/receiver) - the participants in communication. Typically the roles reverse regularly.
M essage - a single uninterrupted utterance. Verbal or nonverbal. Key terms Chapter 1 BUSINESS COMMUNICATION It is a fact that effective communication is the key to success in both personal and business relationships. In the absence of proper communication between two people, actions will not be in tandem with the actual motive.
Two-way process of reaching mutual understanding, in which participants not only exchange (encode-decode) information, news, ideas and feelings but also create and share meaning. In general, communication is a means of connecting people or benjaminpohle.com business, it is a key function of management--an organization cannot operate without communication between levels, departments .
Key terms & concepts. Explanation: Designing effective written business communications for readers in other countries requires that you approach the development of international communication documents from various perspectives.